United Bank for Africa (UBA) has revealed plans to resume dividend payments to shareholders in 2026, while placing strong emphasis on recovering outstanding loans from customers.
The bank’s leadership explained that this move is part of a broader strategy to strengthen its financial position after a challenging year. Despite recording strong revenue growth, UBA experienced a significant drop in profit due to large provisions set aside for bad loans. Speaking during an interview, the bank’s Group Managing Director and Chief Executive Officer, Oliver Alawuba, reassured investors that efforts are already underway to improve the bank’s loan performance. According to him, “We’re going after these defaulting customers and there are signs that they are paying back. Once they do, we’ll be in a position to pay dividends for this year.”
UBA had earlier suspended its final dividend payment due to regulatory and financial pressures. The decision followed directives from the Central Bank of Nigeria (CBN), which required banks to exit the forbearance loan window. To comply, UBA made a one-time provision of about N331 billion for non-performing loans, a move that significantly impacted its profitability.Explaining the situation further, Alawuba noted that “That dividend didn’t come because the NPL ratio was a bit higher than expected for a dividend payment. However, the good news is that this is a one-off thing.”
Although profits declined, the bank still posted strong earnings overall. Its gross earnings rose to over N3 trillion, driven by growth in both interest and non-interest income streams. Investments in securities, treasury bills, and bonds contributed significantly to this performance, while loans to customers also remained a major source of income. UBA’s financial strength is also reflected in its growing deposit base, which expanded by more than 10 percent. This increase highlights customer confidence and provides the bank with sufficient liquidity to support future lending and business expansion. The bank continues to maintain a strong presence across Africa and beyond, operating in over 20 countries.
Its international operations delivered impressive results, contributing significantly to overall profits and reinforcing its position as one of Africa’s leading financial institutions. Looking ahead, UBA is optimistic about improved performance as economic conditions stabilize. The management expects that lower interest rates and increased lending opportunities will help boost profitability.
Alawuba expressed confidence in the bank’s outlook, stating that “As the economy in Nigeria moderates the recovery… interest rates will come down, which will give us the impetus for loan growth that will further boost profit. The business is strong.” Overall, UBA’s strategy centers on cleaning up its loan book, strengthening financial stability, and positioning itself for sustainable growth. With signs of improved debt recovery and a solid capital base, the bank appears set to reward shareholders again in 2026.
